Hyundai Motor and South Korean union agree 9% pay rise

The Hyundai Motor Company logo is pictured at the New York International Auto Show in Manhattan, New York, U.S., April 13, 2022. REUTERS/Andrew Kelly/

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SEOUL, July 20 (Reuters) – Hyundai Motor Co (005380.KS) and a union representing its South Korean workforce have reached a pay deal that will raise annual wages by around 9% just days after the automaker has pledged to build its first new auto plant in nearly 30 years.

The union, one of South Korea’s largest with more than 46,000 members, said late Tuesday that a total of 62% of its voting members approved the tentative agreement reached last week, while 38 % rejected it. Read more

The deal, reached after 15 rounds of talks that began in May, comes after Hyundai announced plans to build a dedicated electric vehicle (EV) factory in South Korea. Read more

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“With the latest agreement, we hope the company and the union can work closely together and share their vision for leading the future mobility industry,” Hyundai Motor said in a statement to Reuters on Wednesday.

Unionized workers had voted earlier this month for a possible strike over demands for higher wages amid anger that management was prioritizing overseas investment. Hyundai Motor workers last went on strike in 2018. read more

The union had urged Hyundai to invest in the country to support new businesses, including urban air mobility, purpose-built vehicles and the manufacture of auto parts related to electric vehicles. One of his requests was the construction of an electric vehicle manufacturing plant.

In May, Hyundai Motor Group, which includes Hyundai Motor and Kia Corp (000270.KS), said it would invest 63 trillion won ($48 billion) in South Korea through 2025.

Separately, the South Korean automaker said it will invest more than $10 billion in the United States by 2025, which includes plans to invest $5.5 billion in Georgia to build facilities. electric vehicles and batteries.[nL2N2XE00O[nL2N2XE00O[nL2N2XE00O[nL2N2XE00O

Shares of Hyundai Motor rose 1.3% in morning trade, against a 1.2% rise in the benchmark KOSPI (.KS11).

($1 = 1,306.0200 won)

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Reporting by Heekyong Yang; Editing by Catherine Evans, Jonathan Oatis, Susan Fenton and Kenneth Maxwell

Our standards: The Thomson Reuters Trust Principles.

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